Mostly right. See, in SovCit land, the government is a corporation. When you're born, they create a savings account with your social security number that is used to back the fiat currency. Basically they think every person owns a fair portion of the total wealth in dollars in the world. For every dollar on earth, there's a dollar in a social-security number.

So when they take out a loan, that loan is backed by the tens of millions in their government account, they are in fact either lending to themselves, or simply withdrawing from their own account.